The Public Service Commission of Wisconsin has approved rate increases for WE Energies customers for 2027 and 2028

The Public Service Commission of Wisconsin has approved rate increases for W.E. Energies customers for 2027 and 2028, though the adjustments are lower than the utility's initial requests. Under the approved decision, base electric rates will rise by 3.9% in 2027 and an additional 3.5% in 2028. For a typical residential customer, the 2027 adjustment translates to a monthly bill increase of approximately $7 to $8, or roughly $156 over the full year. In 2028, residential bills are projected to increase by another $6 to $7 per month.

Several factors are driving the rate adjustments across the utility's infrastructure. Key drivers include ongoing investments in the clean energy transition, such as new solar, wind, and battery storage projects. Utility investments are also targeted toward enhancing grid resilience and maintenance through extensive tree trimming, severe weather protection, and undergrounding power lines. Additionally, general operational costs and power purchase agreements, including long-term commitments with facilities like the Point Beach Nuclear Plant, contributed to the overall rate adjustments.

The rate decisions have prompted significant local government action in southeastern Wisconsin. On Friday (November 6), the Milwaukee Common Council voted unanimously (15–0) to approve up to $1.35 million in borrowing for a comprehensive feasibility study. The study will evaluate the potential replacement of We Energies service within the city by creating a municipal, city-owned public utility.

During Alliant's third-quarter earnings call, CEO Lisa Barton disclosed ongoing talks for seven potential new sites and three expansions to existing data centers. Alliant Energy already maintains agreements to supply 3.4 gigawatts of electricity to hyperscale data center projects, which include Meta facilities in Beaver Dam, Wisconsin, alongside Google and QTS operations in Iowa. Over the next six months, the utility anticipates securing contracts for an additional 1 gigawatt of data center power supply.

To accommodate the rapid increase in AI and data center electricity demand, which is projected to raise peak system load by approximately 60% by 2031, Alliant has expanded its four-year capital expenditure plan to $15.9 billion. In addition, the U.S. Department of Energy's Office of Energy Dominance Financing finalized a $5.1 billion loan package for Alliant Energy to support grid reliability and power generation expansion across Iowa and Wisconsin. This federal package aims to lower electricity costs and deliver over $1 billion in savings to regional consumers while funding natural gas-fired facilities, energy storage systems, and infrastructure upgrades.

The rapid expansion of data centers has drawn significant community scrutiny, regulatory attention, and local pushback. Moratoriums on data center development have emerged in local areas such as Madison and Dane County, prompting Alliant to propose specialized large-user rate structures and face transparency mandates from state regulators. Meanwhile, grassroots groups and political figures have advocated for ratepayer protections and moratoriums to ensure that large corporate energy demands do not result in higher utility bills for local residents.